Insolvency Act 1986, section 136

Functions of official receiver in relation to office of liquidator

Part IV Winding Up of Companies Registered under the Companies Acts

(1)The following provisions of this section have effect, subject to section 140 below, on a winding-up order being made by the court in England and Wales.

(2)The official receiver, by virtue of his office, becomes the liquidator of the company and continues in office until another person becomes liquidator under the provisions of this Part.

(3)The official receiver is, by virtue of his office, the liquidator during any vacancy.

(4)At any time when he is the liquidator of the company, the official receiver may [F311in accordance with the rules seek nominations fromF311] the company’s creditors and contributories for the purpose of choosing a person to be liquidator of the company in place of the official receiver.

(5)It is the duty of the official receiver—

(a)F312as soon as practicable in the period of 12 weeks beginning with the day on which the winding-up order was made, to decide whether to exercise his power under sub-section (4) ... , and

(b)if in pursuance of paragraph (a) he decides not to exercise that power, to give notice of his decision, before the end of that period, to the court and to the company’s creditors and contributories, and

(c)F313(whether or not he has decided to exercise that power) to exercise his power ... under subsection (4) if he is at any time requested, in accordance with rules, to do so by one-quarter, in value, of the company’s creditors;

and accordingly, where the duty imposed by paragraph (c) arises before the official receiver has performed a duty imposed by paragraph (a) or (b), he is not required to perform the latter duty.

(6)A notice given under subsection (5)(b) to the company’s creditors shall contain an explanation of the creditors’ power under subsection (5)(c) to require the official receiver to [F314seek nominations fromF314] the company’s creditors and contributories.

Definitions used in section 136 1

the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act

Cases considering section 136 8

In re Pantmaenog Timber Co Ltd (Official Receiver v Grant Thornton, Official Receiver v Meade-King, Official Receiver v Wadge Rapps & Hunt)

[2001] EWCA Civ 1227 · 25 July 2001Defines

The official receiver becomes liquidator in a court winding up until another person is appointed, subject to the statutory exceptions. (see the paragraphs beginning “Section 136 of the Act applies” and “The official receiver will have become”) On a court winding-up order, the official receiver became liquidator by virtue of office. (see the paragraph beginning “On the making of that order”)

Parrot Pay Limited (in liquidation) v Goddington Pierce Limited (in provisional liquidation)

[2023] EWHC 2774 (Ch) · 24 October 2023

Applies the provision so that the official receiver became liquidator automatically upon the making of the winding-up order, before being removed by the court. (see para [15])

Thomas Cook Group Plc & Ors, Re

[2019] EWHC 2626 (Ch) · 23 September 2019

The judgment confirms that, on the making of the winding-up orders, the Official Receiver became liquidator automatically by operation of section 136 (see paras [16](iv), [17], [25]).

What each judgment says about section 136 is in the case-law panel in the full Act.

Amendments and notes

6 notes from legislation.gov.uk

Amendments

  1. F311Words in s. 136(4) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 31(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  2. F312Words in s. 136(5)(a) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 31(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  3. F313Words in s. 136(5)(c) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 31(3); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)
  4. F314Words in s. 136(6) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 31(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

Modifications

  1. C387S. 136 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(9), Sch. 4 Pt. II, para. 12
  2. C388S. 136 applied (with modifications) (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), Pt. 3 reg. 1, Sch. 2 paras. 3, 5 Table (with reg. 24)